# In the matter of State Bank of India Vs. Tadisetti Murali Mohan, CP (IB) No. 33/95/AMR/2022

> NCLT judgment dated 2022-05-06. Citation: TCN-2022-NCLT-02855. The case involves a company petition filed by State Bank of India (SBI), the Financial Creditor…

- **Court:** NCLT
- **Order date:** 6 May 2022
- **Citation:** TCN-2022-NCLT-02855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-tadisetti-murali-mohan-cp-5fd7dcb8

## Summary

### Background

The case involves a company petition filed by State Bank of India (SBI), the Financial Creditor (FC), under Section 95 read with 60(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Insolvency Resolution Process against the Personal Guarantor, Tadisetti Murali Mohan, of the Corporate Debtor (CD), M/s. Ethnic Agros Limited. The CD is engaged in trading agro commodities and availed credit facilities from the FC. The Personal Guarantor stood as guarantor to secure the financial assistance availed by the CD. The CD's account was declared NPA on 27.02.2019, and the FC issued a notice under Section 13(2) of the SARFAESI Act on 30.03.2019 to both the CD and the Personal Guarantor. A Company Petition was filed against the CD to initiate the

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## Facts

M/s. Ethnic Agros Limited, the Corporate Debtor (CD), is engaged in the business of trading in agro commodities and availed various credit facilities from State Bank of India (SBI), the Financial Creditor (FC). Tadisetti Murali Mohan, the Personal Guarantor, stood as guarantor to secure the financial assistance availed by the CD. The outstanding debt and default as on date is Rs.96,17,15,861.76/- (Including un-applied interest). The CD executed various loan documents, and the guarantors of the CD executed Guarantee Agreements and secured the repayment of the CD. The CD committed defaults and was declared as NPA on 27.02.2019. The FC issued notice under Section 13(2) of SARFAESI Act dated 30.03.2019 to both the CD and the Personal Guarantor. The notice sent to the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95 of the IBC to initiate …

**Ratio:** The ratio decidendi is based on the interpretation of Section 7 of the IBC, Section 18 of

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**Reasoning:** The court reasoned that the limitation period should be calculated from the date of

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**Interpretation:** The court interpreted Section 7 of the IBC to mean that the limitation period

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Ethnic Agros…; Tadisetti Murali…

## Timeline

- **2019-02-27 — Account decla…**: The account of the Corporate Debtor was…
- **2019-03-30 — SARFAESI Act…**: Financial Creditor issued notice under Section 13(2) of SARFAESI Act to both the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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